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New York, June 30, 1999


Superintendent of Insurance Neil D. Levin today announced that 44 insurers have failed to comply with New York’s Y2K disclosure requirements. The companies will face monetary penalties.

"Consumers have a right to know about the status of their insurer’s preparations for the Year 2000 and how they might be impacted. Insurance companies that failed to provide required disclosure of their Y2K readiness plans are being named so that policyholders can hold them accountable," said Levin.

The Department’s Y2K disclosure obligation marks the first time that insurers without publicly traded securities were required, in accordance with Securities and Exchange Commission guidelines, to disclose their state of readiness, a description of their costs to address Y2K issues, the risks associated with their Y2K issues, and their contingency plans. By requiring mutual insurers and other nonpublic companies to disclose this information, policyholders are able to review the companies’ Y2K plans.

The Department warned the 152 property insurers, 93 life insurers, and 21 health insurers that failed to file Y2K plans on April 1 as required that they could face disciplinary action. As a result of this warning, most of these companies have since complied. However, 42 property insurers, one life insurer, and one health insurer still have not adequately disclosed their Y2K information. Levin noted that these companies may, in fact, have Y2K readiness plans, but have not disclosed them adequately to the Department. The companies are:

Company Name

Accredited Surety and Casualty Co.
Aegis Security Insurance Co.
Associated International Insurance Co.
Atlantic Alliance Fidelity and Surety Co
Broome County Co-Op Fire Ins Co
Business Insurance Co.
Cambridge Co-Operative Fire Insurance Co.
Capital Mutual Insurance Co.
Chatham Reinsurance Corporation
Chrysler Insurance Co.
Colonial Cooperative Insurance Co.
Community Mutual Insurance Company
Connie Lee Insurance Co.
CORPA Reinsurance Co.
Farmers Mutual Ins Co of Milan, Pine Plains & Stanford
Farmers' Town Mutual Insurance Co. of Clinton
Fire Districts of NY Mutual Insurance Co.
First American Title Co.
Franklin Fire Insurance Co.
FSA Insurance Co.
Goldstreet Insurance Co.
Guarantee Insurance Co.
Hartwick Town Insurance Co.
Hereford Insurance Co.
Heritage Indemnity Co.
Illinois Insurance Co.
Investors Insurance Co of America
MEDMARC Mutual Insurance Co.
Meredith Insurance Co.
Mid-Hudson Co-Operative Insurance Co.
MidStates Reinsurance Corp
Paladin Reinsurance Corp
QBE Insurance Corporation
Resource Life Insurance Co.
State National Insurance Co.
Miix Insurance Co.
Ulico Casualty Co.
United Casualty And Surety Insurance Co.
United Equitable Insurance Co.
United International Insurance Co.
Washington Title Insurance Co.
Wellcare of New York
Westchester Fire Insurance Co.
X.L. Insurance Co Of America

The Department continues its aggressive efforts to ensure that insurers have Y2K readiness plans in place and that the companies are providing full disclose to policyholders. Highlights of the Department’s Y2K compliance initiatives to date include:

  • Requiring insurers to have a written plan and budget to assure computer systems are Y2K complaint;
  • Requesting that a senior officer of the company provide an ongoing status of all Y2K initiatives and sign all quarterly surveys to the Department. These quarterly status updates provide ongoing reports on all Y2K initiatives by addressing budgets, vendor status, contingency plans and communications to policyholders, shareholder and customers;
  • Performing on-site targeted Y2K examinations of the companies;
  • Requiring company CEOs to submit signed certifications to the Department once all systems are determined to be in compliance;
  • Convening a monthly internal Y2K task force to review industry status chaired by the Executive Bureau; and
  • Creating a Y2K section on its website.

Department of Financial Services


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